Replies to post #7086 on QSGI, Inc.(fka QSGI)

[Kharybdis]

It can be found on PACER document number 224. The relevant portion of which can be found in the following post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=53281547

So you see it is not my claim but rather the claim of the Trustee. Do not try and twist this to make it look like a baseless claim on my part. If you had read the docs like you claim to have then you would have seen this long ago or in the alternative, as recent as last night. I didn't post the information because it has already been posted and you might have accused me of spamming.

But now that you raise the issue and for the avoidance of doubt, here is the full text of the document you seek. It will save everyone $0.48 by not having to download it.


UNITED STATES TRUSTEE’S MOTION TO DISMISS OR CONVERT
COMES NOW the United States Trustee for Region 21, in furtherance of the administrative responsibilities imposed pursuant to 28 U.S.C. §586(a), and respectfully moves this Court to enter an order dismissing, or converting to Chapter 7, the above-styled case. As cause therefore, the
United States Trustee shows as follows.

1. The Debtors, QSGI Inc., QSGI-CCSI, Inc.[09-23659-EPK], and QUALTECH
SERVICES GROUP, Inc.[09-23660-EPK] filed petitions for voluntary relief under
Chapter 11 on July 2, 2009. By Order entered on July 7, 2009, these cases are jointly
administered.
2. Debtors operated as technology service and maintenance companies.

3. QSGI, Inc.’s schedules reflect assets with an approximate value of $8,511,894 and
liabilities in the amount of $111,110,417. QSGI-CCSI, Inc.’s schedules reflect no
assets and a secured claim for the lease of the Debtor’s facilities in the amount of
$10,000,000. QUALTECH SERVICES GROUP, Inc.’s schedules reflect assets in the
amount of $11,461,184 and liabilities in the amount of $5,272,688.

4. On September 9, 2009, this Court issued an Order authorizing the Debtor to sell
substantially all of DCM’s assets (DE #118). On September 24, 2009, this Court

Case 09-23658-EPK Doc 224 Filed 04/01/10 Page 1 of 6

issued an Order approving the sale of DSC’s assets (DE #139). DCM and DSC are
divisions of the Debtors. The estates received $2,450,000 from these sales. Attached
as Exhibit A is an unsigned copy of the “Acknowledgment and Agreement Regarding
Cash Purchase Price” provided to the U.S. Trustee by counsel for the Debtors.
5. Since the sale of substantially all of its assets in September 2009, the Debtors ceased
operating.
6. The Debtor, QSGI, Inc.’s most recent monthly operating reports for October,
November and December 2009, reflect no cash at the end of the month.
7. QSGI, Inc. is delinquent with its January and February 2010 monthly operating
reports. The other two Debtors have not filed monthly operating reports since
August, 2009.
8. The Debtors are also delinquent on their U.S. Trustee’s fees for the 3rd and 4th
quarters of 2009, resulting in an outstanding balance in excess of $21,000. Fees are
due for the 1st quarter, 2010 at the end of April, 2010.
9. On February 19, 2010, the Court entered an order extending the deadline for filing
the plan and disclosure statement to March 1, 2010. (DE# 215).
10. As of March 30, 2010, the Debtors have failed to file a plan and disclosure statement.
11. Section 1112(b)(1) provides that, absent unusual circumstances, the Court shall
dismiss or convert a case to Chapter 7 if the movant establishes cause. Section
1112(b)(4) provides a list of causes that would meet the requirements of 11 U.S.C.
§1112(b)(1). Failure to pay U.S. Trustee’s fees is case pursuant to 11 U.S.C.
§1112(b)(4)(K). Failure to file a disclosure statement or plan within the time fixed
Case 09-23658-EPK Doc 224 Filed 04/01/10 Page 2 of 6
3
by order of the court is pursuant to 11 U.S.C. §1112(b)(4)(J). Failure to timely file
monthly operating reports is cause for dismissal or conversion pursuant to 11 U.S.C.
§1112(b)(4)(F).
12. Debtors do not have sufficient funds with which to fund a plan of reorganization.
With no cash at the end of the month, it appears that the Debtors have insufficient
funds to successfully reorganize, indicating an absence of a reasonable likelihood of
rehabilitation, cause for dismissal or conversion of the case to Chapter 7 pursuant to
11 U.S.C. §1112(b)(4)(A).
13. Debtor's failure to abide by the requirements of the Bankruptcy Code is not in the
best interests of creditors and the estate and constitutes grounds for dismissal or
conversion under 11 U.S.C. §1112.
CERTIFICATION OF CONFERENCE
I HEREBY CERTIFY that, pursuant to Local Rule 9073-1(D), I have contacted the Debtor
to attempt to resolve the issues herein. (Signature below).
Case 09-23658-EPK Doc 224 Filed 04/01/10 Page 3 of 6
4
WHEREFORE, the United States Trustee respectfully requests this Court enter an Order
dismissing or converting this case to Chapter 7 and granting any other or further relief the Court
deems just and appropriate.
DONALD F. WALTON
United States Trustee
___/s/_________________________
HEIDI A. FEINMAN
Trial Attorney
Florida Bar No. 0879460
Office of the U.S. Trustee
51 SW First Avenue
Room 1204
Miami, FL 33130
[phone]
Case 09-23658-EPK Doc 224 Filed 04/01/10 Page 4 of 6
5
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the UNITED STATES TRUSTEE’S
MOTION TO DISMISS OR CONVERT was electronically filed with the Court using the
CM/ECF system, which sent notification to all parties of interest participating in the CM/ECF
system.
Geoffrey S. Aaronson [e-mail] , [e-mail]
Howard J Berlin [e-mail],
[e-mail];
[e-mail]
Department of Revenue Michigan [e-mail]
Spencer Gollahon [e-mail]
Philip J Landau [e-mail]; [e-mail]; lrosetto@sflpa.
com; [e-mail]
Arthur C. Neiwirth [e-mail]
John E Page [e-mail], [e-mail];lmelton@sflpa.
com; [e-mail]
Brian G Rich [e-mail], [e-mail]
Reggie David Sanger [e-mail] , [e-mail]
Peter E Shapiro [e-mail], [e-mail]
[e-mail]
Bradley S Shraiberg [e-mail] , [e-mail];lrosetto@sflpa.
com;[e-mail]
Tina M Talarchyk [e-mail], jgarcia@mcdonaldhopk
ins.com
Case 09-23658-EPK Doc 224 Filed 04/01/10 Page 5 of 6
6

I further hereby certify that a true copy of the attached was sent via U.S. mail, properly
addressed and with correct postage to the following:
QSGI, Inc.
400 Royal Palm Way
Palm Beach, FL 33480
QSGI-CCSI, Inc.
200 Knickerbocker Avenue
Bohemia, NY 11716
QUALTECH SERVICES GROUP, Inc.
3225 Neil Armstrong Blvd., #600
St. Paul, MN 55121
I hereby certify that I am admitted to the Bar of the State of Florida and the I am excepted from additional
qualifications to practice in this Court pursuant to Local Rule 9011-4 pertaining to attorneys representing the United
States government.
DONE this the 1st day of April, 2010.
________/s/______________
HEIDI A. FEINMAN